Why Radio…why now?

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As of now, the “great threat to Radio” is at the beginning of a very slow and painful decline to its ultimate place as another niche audio internet playlist, much like Sirius/XM has become. Of course we are talking about Pandora, whose stock just suffered another bone crushing loss of value (-10%) as investors now know its business model is genetically flawed. We are talking about Pandora, whose ominous audience erosion has been continuous for the past 5 months; both in time spent listening and log in occasions. “Active users” fell again from 76.2 million to 73.4 million as their “earnings guidance” to investors plunged for the second time in three months. Stock Scouter, a service of MSN, gives the stock a rating of only 3 out of 10.

A humbling 3 out of 10 rating for the “next great threat to Radio.” All that hype, all that attention, and all it comes down to is an embarrassing rating for its stock and its business model.

Pandora’s ultimate descent will not be pretty for investors or the “media experts,” but descending it surely is.